Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

The diagram contains two indifference curves together with two budget lines for goods X and Y. The consumer starts at point R. When the money price of good X falls, the consumer’s chosen position changes to point T. What kind of good is X?

  • Aa Giffen good
  • Ba luxury good
  • Ca normal good
  • Dan inferior good

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